Tata Power rallies by nearly 2 per cent upon sale of assets

Tata Power Company Limited (TPCL) announced that it has entered into conclusive agreements with Oldendorff Carriers GmbH & Co. KG based in Germany, through its fully-owned subsidiary Trust Energy Resources Pte Limited (TERPL), for the sale of three capesize ships - MV Trust Agility, MV Trust Integrity and MV Trust Amity. This transaction has been initiated as part of the company's plan to reduce its debt.

TERPL, based in Singapore, entered into such a transaction for a sale consideration of US$ 212.76 million. Additionally, the transaction also includes a long-term freight contract with Oldendorff Carriers. The proceeds from the sale of these assets will be used by the company to reduce debts and for funding of future expansion plans, thus creating an asset-light model for its shipping business.

Speaking on the development, Praveer Sinha, CEO & MD of Tata Power said "The sale of our shipping assets announced today is in line with our long term plans to reduce debt and raise funds to invest in our future growth plans, including expanding our presence in the renewable energy business. The sale is also part of the restructuring within Tata Power to chalk out the roadmap for growth over the next decade."

On Friday, the company's stock closed at Rs 41.75, up by 1.58 per cent or Rs 0.65 per share. The 52-week high is Rs 74.05 and 52-week low is Rs 27 on BSE.